Riyadh, Saudi Arabia:– The Saudi Real Estate Refinance Company (SRC) wholly owned by the Public Investment Fund (PIF) has successfully completed its latest Sukuk issuance of SAR 3.5 billion. This marks the sixth tranche under its upsized Saudi-Riyal-denominated 20 billion Sukuk program, guaranteed by the Kingdom of Saudi Arabia through the Ministry of Finance.
The latest tranche issued demonstrates strong investor confidence in SRC and the Kingdom's economy, the issuance will enable SRC to keep mortgage rates at low levels. SRC recently obtained an A- (stable) credit rating from S&P Global and was upgraded by Fitch earlier this year to A+ (stable), while Moody’s Ratings upgraded its outlook on SRC to “Positive”.
Fabrice Susini, CEO of SRC, said: “The positive response from investors to SRC's latest Sukuk issuance is a clear testament to the strength of the Kingdom's housing market and economy. As SRC continues to refinance existing financings for financiers, we are proud to contribute to the development of a robust secondary home financing market that supports the efficiency and stability of the primary housing market. This funding will enable us to continue increasing market liquidity and supporting originators and financiers, ultimately promoting stability in the Saudi mortgage market and accelerating homeownership growth in the Kingdom.
Alrajhi Capital and HSBC Saudi Arabia acted as joint lead coordinators on the latest offering, while the joint lead managers are Aljazira Capital, Al Rajhi Capital, HSBC Saudi Arabia, Riyad Capital, and Alinma Investment Company.
SRC’s Saudi-Riyal-denominated Sukuk program supports the strategic objectives of Vision 2030’s Financial Sector Development Program and Housing Program.
The Saudi Real Estate Refinance Company (SRC) was established in 2017 with the aim of helping transform the local housing market. SRC obtained a license from the Saudi Central Bank to operate in real estate refinancing through the secondary market.
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About Saudi Real Estate Refinance Company (SRC):
Fully owned by the Public Investment fund (PIF), the Saudi Real Estate Refinance Company (SRC) was established in 2017, after obtaining a license to operate in the secondary real estate market by the Saudi Central Bank, with the goal of transforming the local housing market.
SRC enables individuals and entities interested in direct or indirect real estate financing to increase and diversify origination of long-term fixed-rate (LTFR) products.
As one of its primary roles, SRC provides banks and real estate finance companies with liquidity or capital relief, enabling growth in the home financing sector to increase home ownership rates among Saudi citizens. SRC will subsequently aggregate and packages home financing portfolios into mortgage-backed securities to be sold to domestic and international investors.
With a world class management team drawing from international best practice, SRC is uniquely positioned to become the partner of choice for banks and non-bank lenders in the Kingdom.
SRC is rated ‘A’ (stable) by Fitch Ratings, A- (stable) by S&P Global and ‘A2’ (positive) by Moody’s Investors Service.
For more information please visit: http://srco.com.sa/
For press enquiries, please contact:
Saudi Real Estate Refinance Company (SRC)
info@srco.com.sa
Joann Joseph, Instinctif Partners
src@instinctif.com
